According to Mr Renato Vallerini director of sales to external markets for Belo Horizonte based integrated steelmaker Usiminas, the economic slowdown in the US is not expected to affect the global steel market or Brazilian steelmakers.

Mr Vallerini during a presentation at the Coaltrans 2008 conference in Rio de Janeiro said that "Risks in the American economy are not likely to inhibit new investments worldwide. In fact, the short to medium erm scenario looks very favorable for investments in steel mills around the world.”

Mr Vallerini during his speech praised China as being responsible for giving the industry a much needed boost in 2002. He said that "China rescued the steel industry from stagnation six years ago. If it weren't for China and other Asian countries, steel production in the rest of the world would have been insignificant. China should continue to drive growth in the global industry."

Mr Vallerini pointed out that 25% of world production is in countries with low production costs. He added that the global steel production should continue to rise but annual growth rates are due to gradually diminish in coming years.

He said that "Production should go up 6% in 2008, 5.5% in 2009, 5% in 2010 and also 5% in 2011.”